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O'Donnell Motor Parts issued 120,000 stock options to its employees. The company granted the stock options at-the-money, when the share price was $34. These options have no vesting conditions. By year-end, the share price had increased to $38. O'Donnell's management estimates the value of these options at the grant date to be $1.70 each. Requirement Record the issuance of the stock options. Record the issuance of the stock options. (Record debits first, then credits. Explanations are not required.) Date Accounts Credit Debit

O'Donnell Motor Parts issued 120,000 stock options to its employees. The company granted the stock options at-the-money, when the share price was $34. These options have no vesting conditions. By year-end, the share price had increased to $38. O'Donnell's management estimates the value of these options at the grant date to be $1.70 each. Requirement Record the issuance of the stock options. Record the issuance of the stock options. (Record debits first, then credits. Explanations are not required.) Date Accounts Credit Debit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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O'Donnell Motor Parts issued 120,000 stock options to its employees. The company granted the stock options at-the-money, when the share price was $34. These options have no vesting conditions. By year-end, the share price had increased to $38. O'Donnell's management estimates the value of these options at the grant date to be $1.70 each. Requirement Record the issuance of the stock options. Record the issuance of the stock options. (Record debits first, then credits. Explanations are not required.) Accounts Date Debit Credit
Transcribed Image Text:O'Donnell Motor Parts issued 120,000 stock options to its employees. The company granted the stock options at-the-money, when the share price was $34. These options have no vesting conditions. By year-end, the share price had increased to $38. O'Donnell's management estimates the value of these options at the grant date to be $1.70 each. Requirement Record the issuance of the stock options. Record the issuance of the stock options. (Record debits first, then credits. Explanations are not required.) Accounts Date Debit Credit
Cash Common stock Compensation expense Contributed surplus-stock options
Transcribed Image Text:Cash Common stock Compensation expense Contributed surplus-stock options
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